Banks get cash infusion

| Print |  Email
Archives - December 2008
Monday, December 01, 2008

PORTLAND As of mid-November, three Oregon banks are in line to get a federal infusion of cash.

Portland-based Umpqua Bank will get a $214 million cash infusion after selling that amount in preferred stock to the U.S. Treasury. Pending shareholder approval this month, Capital Pacific Bancorp in Portland will get $4 million. The Commerce Bank of Oregon will receive an undetermined amount from its parent company’s $1.4 billion Treasury investment. Zions Bancorporation owns Commerce.

The $250 billion Capital Purchase Program is meant to bolster healthy banks so they can lend more  and stimulate the economy. The feds are only investing in banks capable of paying it back, which has analysts scrambling to find out which banks didn’t make the cut, experts say.

“Behind the scenes almost every bank in the Northwest is applying for it,” says Ron Farnsworth, chief financial officer at Umpqua. “But they may apply and not get it, and that’s the investor’s concern.”  Umpqua’s stock value went up more than 20% since the announcement.

Concern has been raised about banks hoarding the cash. Participants must pay a 5% dividend on the shares issued to the government for the first five years of the investment, then 9% after that.

“There’s a lot of concern that banks have turned off the spigot,” says Capital Pacific CEO Mark Stevenson. “Even to their existing clients.”

Both Umpqua and Capital Pacific say they intend to lend the money to Oregon businesses immediately. 

JASON SHUFFLER


Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

More Articles

The Cover Story

Linda Baker
Thursday, August 27, 2015
01-cover-0915-thumbBY LINDA BAKER

How do you put a baby on the cover of a business magazine without it looking too cutesy?


Read more...

Loose Talk

July/August 2015
Friday, July 10, 2015
BY AMY MILSHTEIN

When gossip crosses the line.


Read more...

Flattery with Numbers

July/August 2015
Friday, July 10, 2015
BY JOE CORTRIGHT

The false promise of economic impact statements.


Read more...

Fueling Up for the Climb

July/August 2015
Friday, July 10, 2015
BY GREGG MORRIS

Rita Hansen aims to scale natural gas vehicle innovation.


Read more...

Grain Food

September 2015
Wednesday, August 19, 2015
BY JACOB PALMER

A Power Lunch at Bob's Red Mill Whole Grain Store and Restaurant.


Read more...

Wildcards

Guest Blog
Tuesday, July 28, 2015
072815fergusonthumbBY JASON NORRIS

Uncertainty in Greece and China, along with potential interest rate hikes mean investors are looking at the market and nervously questioning where they should be invested.


Read more...

Best Foot Forward

July/August 2015
Monday, July 13, 2015
BY CHRIS NOBLE

Whether you're stepping out to work or onto the track, Pacific Northwest shoe companies have you covered.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS